Troika in 'Chicken Game' With Greece: Kyle Bass

International regulators known as the "troika" are in a “chicken game” with Greece right now, forcing the struggling nation to prioritize payments, Kyle Bass, managing partner of Hayman Capital, told CNBC Wednesday.

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The troika includes the International Monetary Fund , the European Central Bank and the European Union.

“They are forcing Greece to almost internally default and figure out who they are going to pay, and who they are not going to pay,” said Bass.

A year ago, when the regulators elected to start buying Greek bonds, they asked Greece to agree to hire one worker for every five state workers who leave or retire," Bass said. That ratio was later changed to one new worker for every 10 who left.

But when the troika arrived in Greece a few weeks ago the regulators realized roughly 18,000 to 20,000 Greeks had retired or left but 24,000 had been hired, Bass said.

As a result, the troika left Greece abruptly and the head of an independent Greek budgetary panel quit that day. The panel was set up in 2010 as part of Greece’s efforts to increase transparency and credibility.

The State of Sovereign Debt

Insight into what is next for Greece and discussing the steps the European Union has taken to lever global debt, with Kyle Bass, Hayman Capital Management managing partner and CNBC's David Faber at the Barefoot Economic Summit.

“Greece was taking in all this money and they were not adhering to the austerity plan,” Bass noted. “So the troika is saying, ‘Maybe the aid payment will be maybe mid-October and now you’re hearing November.’”

The global credit market debt — sovereign debt, consumer debt and corporate debt — from 2002 to 2011, has gone from $80 trillion to $200 trillion, Bass stressed. “It’s grown at 12 percent a year [while] real GDP globally has grown at 4 percent per year,” which won’t work for very long.